No Due Certificate (NDC) — Meaning, Format & How to Get It from Your Bank

Image of No Due certificate by bravima Team

Whether you’re closing a personal loan, business loan, or credit card account, you might hear the term “No Due Certificate” (NDC) from your lender. But what exactly is it, and why is it important?

In this guide by Bravima Solution Pvt Ltd, we explain what an NDC is, when you need it, and how it helps protect your credit profile.

What Is a No Due Certificate?

A No Due Certificate (NDC) is an official document issued by a lender (bank or NBFC) confirming that a borrower has fully repaid a loan and has no outstanding dues.

It is typically issued after:

Repayment of all EMIs
Clearance of any pending interest or charges
Successful foreclosure or scheduled loan completion

Why Is a No Due Certificate Important?

Here’s why getting an NDC is critical after loan closure:

1. Proof of Loan Closure

It acts as an official confirmation that you have no financial liability toward the lender.

2. Protects Credit Score

Lenders may not report your loan as “closed” to credit bureaus unless you submit or request a No Due Certificate.

3. Avoids Future Disputes

If any system error occurs (like showing an open loan on your credit report), your NDC becomes your legal backup.

4. Required for Future Loans

Some lenders ask for NDC from previously closed loans while reviewing your new loan application.

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What Does a No Due Certificate Contain?

A standard NDC includes:

Borrower’s name and loan account number
Loan type and amount
Date of loan closure
Statement that all dues have been cleared
Signature and seal of the lending institution

When Should You Ask for an NDC?

Immediately after your:

Final EMI is paid
Foreclosure is completed
Any charges or penalties (if any) are cleared

📌 Tip from Bravima: Even if the lender says it’s optional, insist on getting your No Due Certificate in writing.

Is It Different from a Loan Closure Letter?

Yes, though they are related.

Loan Closure Letter	No Due Certificate (NDC)
Sent automatically on closure	Must be requested manually
Indicates closure	Indicates no outstanding balance
Formal notification	Legal proof of zero dues

Bravima Solution Tip

If you’ve taken a loan via NBFCs like Tata Capital, Bajaj Finserv, or Lendingkart, they may issue NDCs:

Through online dashboards
Via email within 7–10 business days
On request through customer care

📞 If unsure, connect with Bravima Solution—we’ll follow up with your lender and ensure your loan status is closed both with the lender and credit bureaus.